S&P upgrades MDC Partners, debt to B+

Standard & Poor's said it raised its corporate credit rating on MDC Partners Inc. to B+ from B.

The outlook is stable.

At the same time, the agency raised its issue-level rating on the company's senior unsecured debt to B+ from B. The 4 recovery rating remains unchanged, indicating an expectation for average recovery (30%-50%; upper half of the range) of principal in the event of a payment default.

"The upgrade follows MDC's recent announcements addressing the SEC's inquiries into its travel and entertainment (T&E) expense reimbursement practices," S&P credit analyst Naveen Sarma said in a news release.

Most notably, the company announced that founder chairman and CEO Miles Nadal retired, and he will reimburse the company an additional $12.5 million ($1.9 million in improper payments and the clawback of $10.6 million in retention payments) above the previously disclosed $8.6 million payment that he had already made.

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